As the 2023 to 2024 winter season approaches, local retailers play a crucial role in providing easy access to OTC medicines for people who do not want to travel far when feeling run-down. The demand for these medicines has been growing consistently, with sales increasing by 11.6% faster than inflation last year. This trend is likely to continue, as evidenced by the 37% rise in the percentage of adults experiencing a cold in the last 12 months.
Given the pressure on GP appointments, many individuals are turning to OTC remedies as a self-treatment option, leading to overall category growth. In the healthcare category, winter meds are known as “reactive,” where shoppers have an immediate problem and require an effective solution. They trust brands to deliver the desired results, making brands the go-to experts in this space. Unlike other grocery categories witnessing a shift towards cheaper own-label products, shoppers are less likely to compromise on quality when it comes to medicines. Consequently, branded healthcare is outpacing private label in the UK, with a 3.6% growth in brands compared to a 4.6% decline in private label.
Additionally, there is a noticeable preference for natural ingredients in health products. Over half of adults agree that more brands should incorporate natural ingredients in cold and flu remedies. This demand has also influenced launches of products with botanical claims for children, catering to the increased interest from parents in these “natural” alternatives.
To cater to a wider consumer base, retailers should stock a mix of formats for both children and adults. Offering dedicated pediatric products alongside the original adult remedies helps reinforce brand recognition and supports sales. Moreover, there is an opportunity to encourage parents to buy OTC remedies to prevent the spread of germs in the household, as parental priorities shift towards their children’s health.
Convenience and on-the-go formats are highly sought after by busy consumers, presenting an opportunity for retailers to capitalize on shoppers’ impulse needs. For example, the new Olbas Breathe Easy Patches provide a quick, convenient, and easy-to-use option, whether at home or while travelling. The lozenge and pastilles market has also experienced strong growth, with sales values increasing by 30% and volumes up by 11.2% across all channels. Thus, including these products as part of the core offering is crucial.
Trust remains a significant factor for consumers, particularly within the winter remedies category. Well-known branded products continue to perform strongly, contributing to overall sales. Convenience stores, seen as essential local services, can enhance consumer loyalty through interaction with store staff. Being able to confidently answer basic questions about key products, such as the difference between chesty cough and tickly cough remedies, is valuable to shoppers.
Merchandising plays a vital role in attracting customers and encouraging impulse purchases. High visibility is key, with medicines ideally displayed on the main shop floor rather than behind the counter. However, stores with high shoplifting levels may require exceptions. Retailers should also prioritize the placement of winter ailments remedies in prominent locations on-shelf to maximize product visibility.
As we navigate the COVID-19 pandemic, consumer behavior has undergone a significant transformation, with a greater focus on personal and family health. This shift has contributed to the resilience of the winter remedy and broader OTC category compared to others. Consumers actively seek out trusted, effective, and convenient solutions for relieving common winter ailment symptoms. Therefore, brands that meet these criteria are successful, and convenience stores have the opportunity to capitalize on this demand. It is an opportunity that should not be overlooked.
